What it’s worthwhile to know:

– R1 RCM Inc., a number one supplier of technology-driven healthcare income cycle administration options, introduced that it has entered right into a definitive settlement to be acquired by funding funds affiliated with TowerBrook Capital Companions and Clayton, Dubilier & Rice (CD&R). The all-cash transaction values ​​R1 at roughly $8.9 billion.

– Beneath the phrases of the settlement, TowerBrook and CD&R will purchase all excellent shares of R1 widespread inventory not already owned by TowerBrook for $14.30 per share. This represents a premium of roughly 29% to R1’s closing worth on February 23, 2024, the final buying and selling day earlier than New Mountain Capital publicly introduced its preliminary acquisition proposal.

– TowerBrook, which presently owns roughly 36% of R1’s excellent shares, will stay a big investor within the firm alongside CD&R. The transaction is predicted to shut by the tip of this 12 months, topic to customary closing situations, together with shareholder and regulatory approvals.

– The acquisition of R1 by TowerBrook and CD&R represents a robust endorsement of the corporate’s enterprise mannequin and progress prospects. As a personal firm, R1 could have higher flexibility to execute its long-term technique and put money into progress initiatives.